TOKYO, March 22 (Reuters) - Japanese shares tumbled on
Monday as car makers took a hit after a fire at a plant owned by
semiconductor supplier Renesas Electronics 6723.T fanned
worries about more chip supply shortfalls hitting vehicle
production.
The Nikkei continued to underperform the broader market,
after the Bank of Japan said on Friday it would no longer
purchase Nikkei-linked exchange traded funds (ETFs).
The Nikkei share average .N225 fell 2.07% to close at
29,174.15, its biggest decline since March 4.
The broader Topix .TOPX ended its eight-day winning
streak, falling 1.09% to close at 1,990.18.
Renesas dropped as much as 4.89% after the key automotive
semiconductor supplier said production at its fire-damaged plant
will take at least a month to restart, and carmakers will start
to feel a supply pinch in about a month. The transport equipment index .ITEQP.T was the biggest
drag in the market, followed by the insurance sector .IINSU.T .
Honda Motor 7267.T dropped 3.63% while Nissan Motor
7201.T lost 3.7%. Car parts maker Denso 6902.T shed 4.94%
and Toyota Motor 7203.T fell 3.26%.
The shares that have big weightings in the Nikkei average
continued to reel from the Bank of Japan's decision to buy only
Topix-linked ETFs.
Fast Retailing 9983.T dropped 4.54% while Daikin 6367.T
fell 4.02%.
"Today we have had a confluence of negative factors such as
a fire at Renesas factory and the market confusion after the
BOJ's move. But fundamentally, the market is likely going
through a correction on worries about rising U.S. bond yields,"
said Shinichi Ichikawa, senior fellow at Pictet Asset
Management.
Tokio Marine 8766.T fell 5.55% on worries about its
exposure to collapsed British supply chain finance firm, through
its subsidiary in Australia.